Institutional cryptocurrency trading platform FalconX has assured its clients that it is not related to large firms in the industry that have gone bankrupt in recent months.
FalconX has reported that 18% of its unspent cash equivalents remain locked up on the FTX cryptocurrency exchange. And if the company fails to return them, then the cryptocurrency broker will be able to continue working as usual, since it has the necessary capital reserves.
Earlier, FalconX CEO Raghu Yarlagadda said that the FTX restructuring process could face many difficulties and drag on for a long time. Then he assured that the company was lucky and most of its funds are not connected with the crypto exchange.
Now FalconX has clarified that it is not affiliated with FTX, Alameda Research, Genesis or BlockFi. The company said in a statement:
“We understand that periods of uncertainty are very difficult to perceive, not only for our clients, but for everyone involved in the industry. Therefore, we want to assure that our financial position remains strong despite the bankruptcy of FTX. Our trading volumes are up 80% month-over-month and we continue to increase and maintain them.”
It was previously reported that the FTX exchange restructuring team hired financial forensics from AlixPartners to find missing customer funds.
Source: Bits
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